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Albemarle (ALB) Outpaces Stock Market Gains: What You Should Know

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Albemarle (ALB - Free Report) closed at $227.90 in the latest trading session, marking a +1.19% move from the prior day. This change outpaced the S&P 500's 0.62% gain on the day. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.03%.

Coming into today, shares of the specialty chemicals company had lost 17.94% in the past month. In that same time, the Basic Materials sector lost 0.06%, while the S&P 500 gained 0.39%.

Albemarle will be looking to display strength as it nears its next earnings release. On that day, Albemarle is projected to report earnings of $0.96 per share, which would represent a year-over-year decline of 17.95%. Meanwhile, our latest consensus estimate is calling for revenue of $884.48 million, up 0.61% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.99 per share and revenue of $3.35 billion, which would represent changes of -3.16% and +6.96%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Albemarle. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Albemarle is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Albemarle currently has a Forward P/E ratio of 56.47. Its industry sports an average Forward P/E of 12.96, so we one might conclude that Albemarle is trading at a premium comparatively.

Meanwhile, ALB's PEG ratio is currently 2.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Chemical - Diversified was holding an average PEG ratio of 1.15 at yesterday's closing price.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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